This probably isn't the right thread for this but since we have all your minds here, its worth posting.
As a sole trader, provided I leave money for tax I can spend what I want (ie if i need £50 I can take it from the company).
As a Limited Company how would I do this, I wouldn't be declaring a static wage this would vary, I also have debt to pay off so as & when I produce enough revenue I'd like to be able to take it from the company. Would this be done like a performance bonus I pay myself?
This probably isn't the right thread for this but since we have all your minds here, its worth posting.
As a sole trader, provided I leave money for tax I can spend what I want (ie if i need £50 I can take it from the company).
As a Limited Company how would I do this, I wouldn't be declaring a static wage this would vary, I also have debt to pay off so as & when I produce enough revenue I'd like to be able to take it from the company. Would this be done like a performance bonus I pay myself?
My first answer would be as long as it is for the business you can, keep receipts and always ask for VAT ones, and your accountant can advise you on dividends and a basic wage if any. Being Ltd kicks ass with a good accountant :P
It makes things much simpler if you DON'T use the company bank account as your own private account. By all means take money from it, but the bookkeeping will be a lot simpler if you do occasional (or regular) transfers of (say) £1,000 to your personal account, then do your personal stuff after that.
Clients that use the company bank account to draw out £20 cash regularly, do their weekly food shop etc are a real pain!
Well it wouldnt be like dipping in for £50 etc, as a Limited Company I would basically say check the account, theres say £10k, I could wipe out my debt with that, so I'd say leave 20% for tax and take £8k as a Wage/Bonus (transfer to my own account).
Was just curious how i would do something like that, or rather is it legal. My mini-accountant can handle the tax side of things lol
Yeah, that's fine (we are talking a company you own fully...not one you may get a 5% stake in yeah?!)
Ideally you'll have a rough idea of what you'll bring in in advance, and using something like the wondrous FreeAgent, you'll set it up to pay you a salary of ~£450-500/month, and dividends of (say) £1,000/month. Make sure this is less than whatever money the company's bringing in (if it's not, the dividend may well be illegal).
Then every now and then if the bank balance is looking particularly healthy, feel free to take out another chunk as dividend.
That's roughly how it works. Other factors may come into play, like timing of dividends to avoid going into the higher rate tax bracket, employing a spouse/giving them shares (and hence dividends), pension contributions etc etc.
Paying Yourself from a Limited Company 
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